Demand Grows For Baby Eucalyptus

Demand for baby eucalyptus by florists and interior decorators is growing faster than Dennis Milar's miniature forest of the silvery-green trees along Highway 101 in San Martin, Calif.

"It is indeed a growth industry," said Milar, who formed DAT Farms Inc. with a partner three years ago after working for eucalyptus growers in South San Francisco and Watsonville for more than 20 years.

Baby eucalyptus have rounded leaves that form a spiral around the stem. It often is mixed with fresh flowers in floral arrangements, while dried and dyed stems are in demand by stores that cater to boutiques and home crafts people, Milar said.

A lesser-known cousin of the blue eucalyptus, which is used for windbreaks throughout California, baby eucalyptus is a $30-million-a-year business in the state. The tree is grown mainly in Santa Clara, Monterey, Alameda, Sonoma, San Diego and San Luis Obispo Counties.

An infestation of a pinhead-size insect called the blue gum psyllid that began ravaging baby eucalyptus statewide in 1990 is now under control, thanks to a wasp found in Australia and New Zealand that preys on the psyllid.

Milar, who cultivates 70 acres of baby eucalyptus in San Martin, plans to plant 30 acres more in the spring. He also grows the species on 23 acres near San Diego and 18 months ago planted 15 acres of baby eucalyptus in the Mexican state of Jalisco.

Fast growers

Growing under various climatic conditions and buying from a dozen other growers affords a more constant supply, said Milar. Harvest starts on the San Martin plantation in October.

Baby eucalyptus is a hardy species that grows so rapidly that trees are ready for harvest two years after planting, Milar said. Harvesters cut their way through a dense forest of interlocking branches, bundling redolent stems for shipment.

Milar estimates that each acre produces 6,000 1 1/2- to 2-pound bundles. Any other information on production is proprietary, he said, but he said eucalyptus is more profitable than the roses and orchids he used to cultivate.

Cutting stems almost back to the trunk every year and leaving the trees about chest-high keep baby eucalyptus relatively small, Milar said. Otherwise, the tree would, in time, rival the blue eucalyptus in height.

In 10 to 12 years, baby eucalyptus plants lose their vitality, requiring that trees be ripped out and acreage replanted, Milar said.

Milar attends three major floral industry shows a year to stay abreast of what customers want and what competitors are doing. He also visits customers on the East Coast a half-dozen times a year.

Milar has customers in Canada and the Far East as well as across the United States.